The Social and Promotional Games Association (SPGA) has denounced the New York Attorney General Letitia James’ “mischaracterization” of sweepstakes operators.
New York Attorney General Letitia James Shut Down 26 Sweeps Sites
In a late Friday news release, Attorney General James sent cease-and-desist letters to 26 sweepstakes casinos as a way to stop “online sweepstakes casinos operating in New York.”
“The SPGA is disappointed by the New York Attorney General Letitia James’ mischaracterization of legal sweepstakes platforms as ‘illegal’ and ‘dangerous,'” the SPGA said in a statement.
“Our members operate within well-established legal frameworks, pay appropriate taxes, and adhere to a strict code of conduct that includes consumer protections and responsible gaming practices.”
Websites owned by Virtual Gaming Worlds (VGW) Holdings stopped allowing in-game currency that can be swapped for real cash prizes on June 2. However, its three sites — Chumba, Global Poker, and LuckyLand — will allow sweepstakes play to continue until Aug. 1.
New York law prohibits online platforms from offering gambling that involves risking something of value, including virtual coins that can be redeemed for cash or prizes.
SPGA Says Sweepstakes Promotions Are Not Gambling
In addition, sweeps platforms offer players slots, table games, and sports betting using virtual coins that could be exchanged for cash and prizes. Virtual currencies include Sweeps Coins (SC) and Gold Coins (GC).
“Sweepstakes promotions are not gambling under federal law and are legally permitted in the overwhelming majority of U.S. states, including New York,” the SPGA added.
“Despite multiple attempts to engage directly with New York lawmakers and regulators, our outreach has gone ignored. Instead of working collaboratively to establish clear, modern rules for platforms that offer free-to-play games and do not require a purchase to win, the state has opted for overreach.
“It’s disappointing to see a blanket enforcement action taken without meaningful dialogue or effort to distinguish between compliant companies and truly illegal operators. This approach stifles innovation, limits consumer choice, and disregards the legal status of sweepstakes promotions.”
Senator Joseph Addabbo’s Senate Bill 5935 and Assemblymember Carrie Woerner’s Assembly Bill 6745 seek to outlaw sweepstakes casinos. New York’s legislative session adjourns June 12.